ROI from Coaching

Being in the company of those who are responsible for quarterly results and the overall financial health of the organization is always challenging and exciting all rolled into one. And, I always relish that opportunity. Understandably, they have a professional responsibility to want to relate everything that they are being asked to do in relation to the bottom line of the organization.

I have long ago suspected that consultants and management trainers have always steered away from the issue of return on investments on the initiatives that they suggest to clients. The reasons for these are two fold :

1.Not all returns from consulting/management training are measurable in terms of dollar and sense in a direct financial manner and in the immediate term.
2.The choice of dimensions to be measured are not well defined and sometimes difficult to be determined.

I remember some years ago, a senior consultant with whom I had the privilege of 'shadowing' while giving a high level presentation to a group of Malaysian Board of Directors of a main board listed company, saying this when asked whether he can guarantee the ROI from the year long training intervention he is proposing : “Yes. I can guarantee the ROI provided you allow me to change some aspects of your organizational culture after the training and if you can assure me that all my suggestions and recommendations are followed to the word”! My heart was in my throat when I heard one after another the distinguished personalities in front of us...laughing. We got the project and I would like to believe that we brought some degree of change to that organization.

I am sure you remember the once famous Fish Philosophy training modules based on the amazing people of the Manhattan Fish Market. It was all the rage a few years ago and inevitably after the ‘buzz’ begins to wear off, the often repeated question of whether there is clear and direct ROI surfaced in some circles. Then there was a follow-up video and other materials that highlighted the ‘success’ of the training program as experienced by various organizations, including an American hospital. Interestingly, each and everyone of these organizations that have made the Fish Philosophy as part of their culture have measured its success in their own ways. I am not aware of whether there is any study done to actually quantify these ‘successes’. But, do we need to?

Who can say that that the success of the program was not due to the other changes that had happened to the organization and the market independently of the training program? Who can say that it was indeed the training program that brought about the positive changes?

Similarly, what is the ROI when a senior executive is sent to listen to Bill Clinton…which is not cheap! What is the ROI of sending 150 high potentials to the 7 Habits Program?

I am a strong believer in giving clear and quantifiable returns to my clients from each and every one of the solutions that my organization provides. It is important at the outset, to determine the dimensions of measurement, how and when to measure, and, the methodology of measurement. This is when I walk away from a client knowing that I have made a difference to their business.

To the wonderful gentlemen who were in my program last week....I hope you enjoyed being with me for two long days as I thoroughly enjoyed your company.

Cheers mates!